Full-Service Restaurants in Hong Kong, China

PROSPECTS

Major headwinds affect restaurants across the board

2019 was an extremely challenging year for full-service restaurants in Hong Kong. The ongoing trade war between the US and China, as well as a slowing global macro-economy, were already taking their toll on the foodservice industry.

Meat alternatives continue to gain traction

2019 was without doubt the year of “fake meat”, with companies such as Beyond Meat making their much awaited initial public offering, and Impossible Foods leading its ninth round of private funding and raising USD300 million. The trend was very much present in Hong Kong, with an increasing number of traditional restaurants, such as Beef & Liberty, Happy Paradise and Little Bao, starting to offer “Impossible Burgers”.

Third party apps continue to be part of the Hong Kong ecosystem

With dining out being such an integral part of the daily lives of Hong Kongers, third party apps continue to increase in popularity, with different apps catering to different areas of the foodservice industry. OpenRice, for example, is the go-to app for dining suggestions and restaurant reviews.

COMPETITIVE LANDSCAPE

Focus on refurbishing and rebranding to appeal to young generations

With increased competition from other full-service and limited-service restaurants alike, major full-service chains have focused on renewing their brand image to appeal to a wider audience. Tao Heung, one of the major Asian full-service restaurant chains, has continued to renovate its restaurants and revise its menus, which has enabled the company to attract a younger demographic.

Fulum opens a food hall

In July 2019, Fulum opened its first food hall in Hong Kong, in the Yuen Long neighbourhood. Called Foodeli, this new concept aims to merge both foodservice and retail outlets, offering a unique Hong Kong “street food tour” experience.

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